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- Dec 13, 2014
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Short answer - NoAdd to that that those Companies previously made losses. Should they then go hand in cap to Government and ask for money?
Long answer - No
Short answer - NoAdd to that that those Companies previously made losses. Should they then go hand in cap to Government and ask for money?
Short answer - No
Long answer - No
Well over here, they didn't really try to honour them - just immediately went bust.I really hope they are forced to honor the deals they have made, or go bankrupt trying to.
The way i understood it for the companies here is that it probably wont spell doom for most of them, since not many people are locked on to those sort of deals in the first place.Well over here, they didn't really try to honour them - just immediately went bust.
As slot zombie said, here it became impossible for them to honour the deals and they did indeed go bankrupt. 29 of them. The wholesale prices increased by a factor of about 10x their profit margin so they simply folded in days. The UK govt. bailed some of them out.Energy companies in Sweden are trying to get out of having to honor the 'locked' price deals that people have signed with them.
Most dont take those fixed price deals because unless something unforseen happens that increases the price of energy a lot its just not a good deal.
Funny how they are ok with overcharging people but they dont like it now that the shoe is on the other foot
They are basically just saying 'wuaah, the locked price deals are not supposed to benefit the consumers' so we shouldnt have to honor the deals we made.
I really hope they are forced to honor the deals they have made, or go bankrupt trying to.
The big-brains that signed up for locked prices long term dont deserve to be screwed over.
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Sadly im not one of those big-brains, but i do like watching companies lose against the consumers every now and again.
Especially when its their own greed that made it possible for consumers to win in the first place.
They probably shouldnt have promised to deliver energy for a certain price for serveral years without knowing how much said energy would cost them, they gambled and lost.As slot zombie said, here it became impossible for them to honour the deals and they did indeed go bankrupt. 29 of them. The wholesale prices increased by a factor of about 10x their profit margin so they simply folded in days. The UK govt. bailed some of them out.
They were all the rage here, I always had them, mine expired in February and of course that was when the wholesale prices were going mad, so all companies stopped them apart from some doing absolutely mental offers like BG for £8200 a year. To be fair, you can't expect the energy companies to be clairvoyants.They probably shouldnt have promised to deliver energy for a certain price for serveral years without knowing how much said energy would cost them, they gambled and lost.
Going bankrupt from honoring the deals they themselves have made points to a pretty poor business model.
I assume fixed price deals have been a more popular thing in the UK, because from what im reading the saving grace for many energy companies here in Sweden is that not many people have those long term fixed price deals.
Right, so you're saying in one year the UK MARKET has made £170bn profit for UK energy generators, power companies and BP/Shell?
Show me.
The problem is that the deals they were offering pretty much required them to be clairvoyants, at least that would be the only way to make it risk free.They were all the rage here, I always had them, mine expired in February and of course that was when the wholesale prices were going mad, so all companies stopped them apart from some doing absolutely mental offers like BG for £8200 a year. To be fair, you can't expect the energy companies to be clairvoyants.
They were all the rage here, I always had them, mine expired in February and of course that was when the wholesale prices were going mad, so all companies stopped them apart from some doing absolutely mental offers like BG for £8200 a year. To be fair, you can't expect the energy companies to be clairvoyants.
Yep and if what is reported is going to be believed, the govt will be borrowing £100bn plus over the next two years to cap the cap at £2,500 for the average household. One small problem though, we as the consumers will be paying this borrowing back over the next couple of decades via said energy bills.Up to £170bn over the next two years.
I was gonna say, but it's bit disingenous - like saying between them Shell and BP will make $140bn over 2 years. The govt. need to take over the purchase of domestically-produced energy and gas and impose a 10% profit margin over costs of production, so our supplies are insulated mostly (aside from imported) from this mad auction process.Up to £170bn over the next two years. (I didn't make any claims on one year.)
UK gas producers and electricity generators may make excess profits totaling as much as £170 billion ($199 billion) over the next two years, according to Treasury estimates that lay bare the revenue-raising potential of a windfall tax.
Treasury officials will deliver the assessment to the next prime minister when they take office on Sept. 6, according to a person familiar with the matter, who asked not to be identified discussing internal calculations.
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I was gonna say, but it's bit disingenous - like saying between them Shell and BP will make $140bn over 2 years. The govt. need to take over the purchase of domestically-produced energy and gas and impose a 10% profit margin over costs of production, so our supplies are insulated mostly (aside from imported) from this mad auction process.
Bingo! But they won't do it, as it goes against everything the Conservative Party stand for. It is however, common sense. Also no need for fracking either. Open more fields in the North Sea and restart coal power stations and god forbid ahhh coal mines, until such time we have enough Nuclear Power stations online alongside renewables to cover our requirements.Obviously what's ultimately needed here is nationalisation of the energy companies, so the UK can keep the energy it produces and generates, and sell it at a reasonable price to its people and businesses.
But given the fact everyone still gets the £400 payment means it has risen very slightly compared to nearly doubling.Right so prices will still rise this october, but by considerably less than if nothing had been done.
£1971 plus 80% equals £3547 - whereas £2500 is around a 25% increase on £1971.
I have a feeling come october it's not going to look a very good policy by Truss, she's spending a lot of money and people will be disappointed prices aren't frozen at the current rate, they won't realise how worse it could look, they'll just see another 25% increase.
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Yeah I was overlooking that!But given the fact everyone still gets the £400 payment means it has risen very slightly compared to nearly doubling.
Hah, suck it energy companies.
This is the thread where we discuss UK&Swedish energy questions, right?
"Several electricity companies are investigating the possibility of terminating fixed electricity contracts with reference to force majeure, according to information to Ekot. But they have no reason to do that, the Swedish Consumer Agency believes.
- They are not prevented from delivering the electricity, says head of court Gabriella Fenger-Krog.
Several electricity companies are now investigating the possibility of terminating fixed contracts due to the cut-off of gas supplies from Russia, which is driving up electricity prices, Ekot reports.
Gabriella Fenger-Krog, head of legal affairs at the Swedish Consumer Agency, says that it is difficult to comment on the situation that has arisen because the information is still scarce.
But the authority's basic position is that the agreements should not be able to be torn up.
- In general, agreements must be kept, she says.
Since the electricity is mainly produced in Sweden, the Consumer Agency makes the assessment that the companies are not in any way prevented from delivering electricity to customers - even if they do not want to do so at the lower prices.
- Since the companies can deliver electricity, we judge that this is not a force majeure situation. You are not in any way prevented from doing so and there is no reason to cancel the agreement."